Starbucks, which in recent years has scaled down its operations in the United States, is looking toward future expansion in Asia and mostly in China. Starbucks' chief executive Howard Schultzovertake Japan as its biggest market outside North America. Starbucks currently has 376 stores in mainland China (and about 700 if Hong Kong, Macau and Taiwan are included), but plans to open thousands mainland locations more over time. However, Schultz apparently understands that rushing into the China market can be a fatal mistake, stating that China is "a complicated market that requires significant discipline and thoughtfulness." believes that China will
As it has done in Japan, Starbucks will have to modify its offerings to suit Chinese customers, both generally and within different regions of China where tastes can be quite divergent. I'd expect to see more tea-oriented drinks similar to the Roasted Green Tea Latte which has proved popular in Japan. And of course there's the Green Tea Frappuccino which originated in Taiwan, but is now also offered in the U.S.
In my opinion, Starbucks shouldn't bother trying to compete as far as plain old hot tea is concerned (unless they partner with local brands) since most Chinese tea is much better than what Starbucks serves.
If Starbucks is smart, in terms of its product offerings and marketing, I think it can be very succesful in China since young, relatively affluent Chinese are extremely brand conscious. By targeting this audience effectively (largely through Internet and mobile phone marketing) and cultivating the type of "cool" image Starbucks has in the U.S., China might ultimately overtake not only Japan, but maybe even the U.S. as well.
Posts
